How to formulate and communicate your USP - step-by-step guide + 2 USP formulas

There is hardly a market or industry that is not hotly contested these days. Many companies offer the same thing and many do so with the same arguments.

So it's no wonder that most of them are bogged down in the same old sales arguments, one resembling another like an egg.

If you want to stand out from the crowd, you have to be different.

Better. Faster. Cheaper. More competent. More service-orientated. More customer-friendly.

In short: If you want to stand out from the crowd, you have to have a USP!

Definition - What does USP or Unique Selling Proposition mean?

The acronym USP stands for "Unique Selling Proposition" or "Unique Selling Point" and, in sales psychology as well as in offline and online marketing, refers to a unique sales argument (value proposition or performance feature) - i.e. a unique selling proposition.

The unique selling proposition should clearly set a product, brand or service apart from comparable offers from competing companies. Ideally, USPs offer added value for customers that the competition does not offer.

A USP is therefore a special sales promise that represents a strategic competitive advantage in order to convince a specific target group and encourage them to buy.

UVP vs. USP

A Unique Selling Proposition (USP) is a clear sales promise that you make to a relevant target group or consumer.

In this context, you can ask yourself the following questions to define a UPS as a company:

• What differentiates my service offering from competitors?
• Why should potential customers choose my offering over the competition?

The unique value proposition refers to the actual benefit and added value of an offer. A UVP is based on the goals and needs of customers.

If you want to emphasise the specific added value of your offer, then try to answer these questions:

• What added value and benefits does my product or service offer potential customers?
• Which product benefits desired on the market does my offer fulfil?

Now that you know what a USP is, let me explain why you need it.

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What are unique selling propositions or unique selling points used for in marketing?

Market positioning should give potential customers the feeling that a product is not interchangeable. In the next step, they should make a purchase decision in favour of the advertised brand.

In the case of large companies such as Google, Microsoft or Coca-Cola, their own brand image can sometimes be seen as a unique selling point.

What about products whose market is actually oversaturated?

You've probably already been in a similar situation: you enter a supermarket and just want to buy a litre of milk. And then you stand in front of the shelves and look at the similar-looking milk packaging.

If products are only similar because of their name and packaging design, then a customer is likely to go for just any old product.

This could easily be changed through strategic positioning, advertising and an emotional USP.

See these two Austrian examples:

• Ja! Natürlich: "from organic farming"
• Back to the origin: "BIO that goes further"

A unique selling proposition can be defined at both the product and service level:

• a free sample with every order
• Delivery on weekends and public holidays

Categories such as price, exclusivity, sustainability or quality can also be used to define a unique selling proposition.

You can also communicate your unique selling proposition with a convincing product description. You can find out how best to create this in our article "Writing convincing product descriptions: How to achieve significantly more sales!"

What are the differences between basic benefits, additional benefits and unique selling points?

A service or product can have a number of noteworthy features. But is every product benefit really a suitable USP? No, because marketing differentiates between these three terms:

• Basic benefit: The basic benefit of an offer is identical for all products of the same type. It is taken for granted by customers.
• Additional benefit: This additional benefit is not offered by every product of the same type. However, it is not yet an effective unique selling proposition compared to competitors.
• Unique Selling Proposition (USP): A value proposition that no competitor can match. USP communication directs customers specifically to the product and has a positive effect on their purchase decision.

Let's now take a look at the features that your unique selling point should have.

What characteristics should a USP have?

A unique selling point that is effective in the long term should fulfil these four characteristics:

• Uniqueness: the more unique your service/product is, the better it is for your competitive advantage.
• Target group relevance: A unique product must also meet the needs and goals of your target group.
• Profitability: The production costs and purchase price of your offer should be balanced in order to be successful in the long term.
• Defensibility: Make sure that your communicated sales promise is incontestable by delivering what you promise.

What are the limits of a USP?

In an unsaturated market, a new product or service can establish itself relatively easily through the USP concept. The introduction and growth phases are extremely important for unique selling propositions.

From the point at which the offering enters the maturity and saturation phase of the product life cycle, the product policy fixation on the existing USP can cause difficulties. This is because the new product has already received a lot of competition from comparable offers with similar USPs at this point.

There are two strategies available to you here:

1. You can add one or more complementary USPs to your original unique selling proposition, such as a revised pricing policy, to update it.
2. Or you can consider building an emotional brand or corporate image to use as your USP in the future.

Let me show you how to create an effective and strong USP.

How do you formulate a USP? - 2 effective formulas

Developing a unique selling proposition is one thing, communicating it clearly is another.

The unique selling proposition of your product or service is only as effective as it is perceived and understood by your potential customers.

Good marketing is characterised by the fact that it not only develops your unique selling proposition, but also formulates and communicates it effectively.

To keep you one step ahead of your competitors, I'll show you two formulas that you can use to communicate your unique selling proposition crystal clear.

• Here is the first formula, borrowed from Alex Cattoni:
  
  
  Example:
  ithelps entrepreneurs whose websites generate too few customers to generate more traffic, customer enquiries and sales with search engine-optimised, target group-oriented, sales-promoting web texts.
  
  

• Formula #2
  
  
  Example:
  ithelps is an online marketing agency that increases your website traffic by up to 100% in just one year without blowing your marketing budget.

Conclusion: What have we discussed about USP?

You should now know all about unique selling propositions so that you can develop a unique value proposition.

• Now you know what unique selling propositions are and that they help you stand out to your potential customers.
• You have learnt that not all product benefits are suitable as USPs, as they do not give you a competitive advantage.
• We've discussed what features your unique value proposition should have and that you should stick to your promise.
• I have provided you with a step-by-step guide to help you develop and formulate your USP.
• You have received a tip that you can implement immediately.

If you still have questions about the USP or need professional support with its implementation, just get in touch. Write an email to This email address is being protected from spambots. You need JavaScript enabled to view it. call us on +43 1 353 2 353 or send us your enquiry using our contact form.